Worthington Industries - Comparative Multiple Analysis

Worthington Industries (Comparative Multiple Analysis)

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Notes on the Comparative Multiple Analysis of Worthington Industries

WikiWealth compares Worthington Industries's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Worthington Industries's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Worthington Industries.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Worthington Industries's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Worthington Industries's Analysis


How does this work? The Comparative Investment Analysis determines the value of Worthington Industries by comparing Worthington Industries financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Worthington Industries.

See the Worthington Industries cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Worthington Industries.

Also, see the Worthington Industries's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Worthington Industries's valuation conclusion for a quick summary.